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Writer's pictureMike Hill

The Discount Rate. Where are we at and what happens next?


Civil Liability Bill Progress

The story so far:

27 February 2017

Then Lord Chancellor Liz Truss announces a change from 2.5% to -0.75%, the first change since 2001

28 February 2017

The insurance industry pops along to 11 Downing Street for a chat

20 March 2017

The new Discount Rate came into force

21 June 2017

The Civil Liability Bill is in the Queen's Speech

7 September 2017

New Lord Chancellor David Liddington says that the system to set the rate and the rate will change again when parliamentary time allows, within the Civil Liability Bill:

"While it is difficult to provide an estimate, based on currently available information if the new system were to be applied today the rate might be in the region of 0% to 1%."

20 March 2018

The Civil Liability Bill has it's first reading in the House of Lords. Schedule 1A of the Bill makes provision for the Lord Chancellor (by now another new one, David Gauke) to set the rate within 90 days of the legislation commencement date. No timetable for the passage of the Bill is set but rumoured to be in Force by April 2019

April 2019?

Civil Liability Act 2018/9 comes into force?

July 2019?

Another new (?) Lord Chancellor sets the Discount rate at between 0% and 1%? (0.5% anyone?)

August 2019?

The new Discount Rate comes into force

July 2022?

Rinse and Repeat every three years

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